During the third quarter of 2023, Agibank recorded its highest net profit by recording R$ 137.4 million in net income, which was R$ 283.9 million over the first nine months of 2023. Through its fivefold increase in profitability from 2022 (+396.7%), the company has demonstrated its commitment to sustainable growth and a high level of efficiency, which is reflected in its Operating Efficiency Ratio of 55.8%. During the first nine months of 2023, the annualized return on equity was 31%, an increase of 22.5 percentage points from 2022.
Over the period of September 2022, the credit portfolio increased 51.6% to R$ 14.1 billion. The trajectory of gradual change in the credit mix continued, favoring facilities with lower risk and nominal rates, such as payroll loans, which overall grew 55.7% from 2022. As far as the Payroll Benefit Card portfolio is concerned, it already has a total value of R$ 540.8 million and has a high penetration potential in the company's client base. Together, the payroll portfolio has reached a total value of 78% of the total amount of credit.
By following its strategic pillar of becoming the main bank for its customers, Agibank grew by 44.8% YoY its portfolio of Personal Credit to Account-holders, which is fundamental to increase its share of principality among the clients and allow the promotion of other business units in the company.
As of 2022, our credit portfolio continued to grow at a rate three times faster than the market for personal credit in Brazil, as we did in 2021. Agibank's CFO and Investor Relations Officer, Thiago Souza Aor, emphasized that "Our results have proven that we continue to maintain sustainable growth at a level that is much higher than what is common in the sector for this type of credit".
As a result of the substantial growth, delinquency rates were also lowered – the third quarter ended with 3.9% of overdue portfolios over 90 days (-60 basis points QoQ), with a coverage ratio of 132.5%, demonstrating the solid provisioning over the portfolio and risk management of the company. The total revenue for the nine months of the year was R$ 3,652.9 million, an increase of 48.4% from the previous year.
The number of total active clients has continued to grow consistently and consistently with quality. In September, Agibank had reached 2.5 million total active clients, with an average number of five products per active account-holder client.
It is according to the CEO of the company that the performance delivered up to September has given them confidence to move into the last quarter of 2023 with a focus on growth, profitability, discipline, and austerity while maintaining a focus on growth. As Correa concludes, we continue to strive for maximum efficiency, increased digitalization, and hedged to provide our customers with a portfolio that is ever more comprehensive and competitively advantageous.
The aim of Agibank's strategy is to democratize the access to financial services for Brazilians, as it has been born with the purpose of generating financial and digital inclusion to all, especially for the population with lower incomes, which is underserved by the market.. Due to the fact that a large portion of this demographic still needs support in order to be able to access financial services quickly and easily through digital channels, the Company has an omnichannel operation, which provides a complete digital experience through its channels as well as 900 physical hubs all over Brazil.
Due to the fact that a large portion of this demographic still needs support in order to be able to access financial services quickly and easily through digital channels, the Company has an omnichannel operation, which provides a complete digital experience through its channels as well as 900 physical hubs all over Brazil.
Agibank is the source of this information
A Brazilian bank, Agibank, has been achieving new heights in its growth rate and has already surpassed the results of the full year 2022 in just the first half of 2023, which represents a tremendous achievement...
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Source prnewswire